Contrasting EVgo (NASDAQ:EVGO) and QuantumScape (NYSE:QS)

EVgo (NASDAQ:EVGO) and QuantumScape (NYSE:QS) are both auto/tires/trucks companies, but which is the better stock? We will compare the two companies based on the strength of their risk, analyst recommendations, dividends, institutional ownership, earnings, valuation and profitability.

Profitability

This table compares EVgo and QuantumScape’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
EVgo	-10.82%	N/A	-4.60%
QuantumScape	N/A	-39.90%	-35.31%

Volatility and Risk

EVgo has a beta of 2.8, meaning that its stock price is 180% more volatile than the S&P 500. Comparatively, QuantumScape has a beta of 2.54, meaning that its stock price is 154% more volatile than the S&P 500.

Institutional & Insider Ownership

17.4% of EVgo shares are owned by institutional investors. Comparatively, 29.9% of QuantumScape shares are owned by institutional investors. 0.1% of EVgo shares are owned by insiders. Comparatively, 5.5% of QuantumScape shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Earnings and Valuation

This table compares EVgo and QuantumScape”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
EVgo	$384.09 million	1.73	-$41.57 million	($0.32)	-6.63
QuantumScape	N/A	N/A	-$477.86 million	($0.76)	-9.18

EVgo has higher revenue and earnings than QuantumScape. QuantumScape is trading at a lower price-to-earnings ratio than EVgo, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a breakdown of recent ratings for EVgo and QuantumScape, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
EVgo	1	3	6	0	2.50
QuantumScape	2	6	0	0	1.75

EVgo presently has a consensus target price of $5.58, suggesting a potential upside of 163.21%. QuantumScape has a consensus target price of $9.90, suggesting a potential upside of 41.83%. Given EVgo’s stronger consensus rating and higher possible upside, research analysts plainly believe EVgo is more favorable than QuantumScape.

Summary

EVgo beats QuantumScape on 10 of the 13 factors compared between the two stocks.

About EVgo

EVgo, Inc. owns and operates a direct current fast charging network for electric vehicles (EVs) in the United States. The company offers electricity directly to drivers, who access its publicly available networked chargers; original equipment manufacturer charging and related services; fleet and rideshare public charging services; and charging as a service and fleet dedicated charging services. It also provides ancillary services, such as customization of digital applications, charging data integration, loyalty programs, access to chargers behind parking lot or garage pay gates, microtargeted advertising, and charging reservations; and hardware, design, and construction services for charging sites, as well as ongoing operations, maintenance, and networking and software integration solutions through eXtend. In addition, it offers PlugShare such as data, research, and advertising services and equipment procurement and operational services. EVgo, Inc. was incorporated in 2010 and is headquartered in Los Angeles, California.EVgo, Inc. operates as a subsidiary of EVgo Holdings LLC.

About QuantumScape

QuantumScape Corporation, a research and development stage company, focuses on the development and commercialization of solid-state lithium-metal batteries for electric vehicles and other applications. The company was founded in 2010 and is headquartered in San Jose, California.